1. Assume you will retire at age 67. You decide to open a retirement account that earns 8% interest. You will put $125 per month into this account (starting at age 25). how much money will you have once you retire.
2. A bond has an approximate modified duration of 22.50 and an approximate convexity of 440.00. The interest rate decreases by 1.00%. Based on duration and convexity, what is the estimated percentage increase in the bond’s full price? (percent, xx.xx without a percent sign)
Use X.XX format. Please enter your answer as a percentage without the % sign. In other words, 1.23% should be entered as 1.23.